What is an ITIN?
An Individual Taxpayer Identification Number (ITIN) is a 9 digit, U.S. taxpayer number which identifies you to the IRS as a taxpayer. This is a required tax number for any resident alien or non-resident individual who is filing a U.S. tax return (i.e. 1040-NR), claiming a refund or has need to reduce U.S. withholding tax by claiming a tax treaty benefit.
The number is also requested by withholding agents like casinos, banks, investment firms and more. These withholding agents require the ITIN to report income and withholding amounts to the IRS if required.
If you do not have an ITIN you must apply for this number when you submit your tax return or you can apply for the ITIN under an IRS exception if you can provide supporting documentation showing your eligibility for a U.S. tax number.
Why Do You Need an ITIN?
Common reasons to apply for an ITIN include the following:
- You need to file a US Tax return like a 1040-NR or to file a form such as form W-8BEN to claim tax treaty benefits
- You are making a claim for a US tax refund for tax withheld from U.S. sourced income, (i.e. gambling winnings, dividends, royalties, etc.). Generally the tax forms issued to you at the time of withholding would be form 1042-S, form 1099, form 8821, etc.
- You have a U.S. Investment account and are required to provide the ITIN for reporting purposes or to claim a tax treaty benefit to reduce tax withholding amounts
- You own a U.S. property and have a U.S. mortgage for the property which requires reporting of your interest payments to the mortgage lender
- You sold a U.S. property and received a Form 8821 or you are receiving a request from the IRS to provide your ITIN so they can issue you the official form 8821
- You are receiving passive income from renting your U.S. property and need to report your U.S. rental income and expenses
Why use our service?
Our service alleviates the worry and burden of being without your original identifying documents (i.e. passport, driver’s license, etc.) for 2 months and also removes the risk of lost documents. Your identifying document would normally need to be mailed to the IRS, processed and then mailed back to you; the IRS returns the documents by regular post so no tracking is available should the documents be lost.
There are alternatives to sending the original identification to the IRS. You can contact us to discuss these options in further details. We have a Certifying Acceptance Agent agreement with the IRS.
What is an IRS Certifying Acceptance Agent?
“A Certifying Acceptance Agent is a person or an entity (business or organization) who, pursuant to a written agreement with the IRS, is authorized to assist individuals and other foreign persons who do not qualify for a Social Security Number but who still need a Taxpayer Identification Number (TIN) to file a Form 1040 and other tax schedules. The Certifying Acceptance Agent facilitates the application process by reviewing the necessary documents, authenticating the identity when able and forwarding the completed forms to IRS.”1
1042-S Tax Services is an approved Certifying Acceptance Agent (CAA) and is authorized by the Internal Revenue Service (IRS) to assist foreign taxpayers who are not eligible to obtain a Social Security Number (SSN) with applying for an Individual Taxpayer Identification Number (ITIN).
Our formal agreement with the IRS started on May 15, 2019 and it allows us to:
- Prepare and sign the Application for Individual Taxpayer Identification Number (ITIN), form W-7. As specialists, we can understand and provide advice about your situation so the application for the ITIN is processed more efficiently and with much less chance of rejection.
- Given recent changes in IRS procedures you are now required to send either an original identifying document (i.e. passport) or provide the IRS with a certified copy of the document(s) to meet the W-7 application requirements. NOTE: A notary public certification is no longer accepted for certain applications. As an authorized IRS CAA we can certify your original identification to meet the application requirements for the W-7 application, which will save you time and money.
- Submit your application with all required documents to the IRS and receive and discuss information about your ITIN directly with the IRS.
1 https://www.irs.gov/individuals/new-itin-acceptance-agent-program-changes
